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128: Stock Market Direction Becomes Irrelevant When You Average Down

128: Stock Market Direction Becomes Irrelevant When You Average Down

FromThe Option Alpha Podcast


128: Stock Market Direction Becomes Irrelevant When You Average Down

FromThe Option Alpha Podcast

ratings:
Length:
24 minutes
Released:
Apr 30, 2018
Format:
Podcast episode

Description

Show notes: http://optionalpha.com/show128 How important is picking the right stock market direction when trading options? Depending on how you trade, it can be either vitally important or not important at all. Today's podcast offers some insight and examples of why higher trading frequency and why averaging down (or up) around the market creates an environment in which market direction becomes more irrelevant the longer you trade. As retail traders, we want to try to replicate more and more frequent "resets" of our overall break-evens which in turn lead to less dependence on the market direction for profits.
Released:
Apr 30, 2018
Format:
Podcast episode

Titles in the series (100)

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.